KeyOn Communications Drops in Value on Broadband Stimulus Rejection

KeyOn Communications announced last week that all of its eleven applications, for $152 million in capital subsidies in Round I of the federal broadband stimulus program, were rejected by the Department of Agriculture's Rural Utilities Service. Over the two full trading days since that announcement, the company, which bet heavily on the broadband stimulus program, has lost 46% of its value.

KeyOn Communications applied for funding to extend its wireless, WiMAX delivered, broadband services in the 11 states of: Arkansas, Illinois, Iowa, Kansas, Minnesota, Missouri, Oklahoma, Nebraska, Nevada, South Dakota, and Wisconsin. Requested funds by state ranged from a high of $20.5 million in Iowa, to $5.9 million in South Dakota.